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tv   Markets Now  FOX Business  September 27, 2012 11:00am-1:00pm EDT

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postal service continues. dagen: and former chief of the fdic sheila baer to tell you what's wrong with your banks how to fix it. connell: new book out, some controversy there, we will talk to her about it. at the top of the hour let's talk to nicole petallides right now and every 15 minutes with stocks now. looking at a big merger today. nicole: that's right. focus on the merger in the mattresses business. everybody knows sealy and everybody knows tempurpedic. these are getting together. you have tempurpedic agreeing to acquire the rival sealy at a 2.8% premium and combines the two companies, they are just more highly leveraged in order to be able to combine their strong assets. they will though still operate separately in many ways, so we'll continue to follow but
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temper-pedic. look at that. back to you. connell: nicole thank you. dagen: take a look at this. the u.s. economy growing at a very weak 1.3% in the second quarter, revised down from 1.7%. that is, well, lousy. connell: deputy editor at the "wall street journal"'s editorial page is here to tell us it's always the economy, stupid, at least that was your column? >> that's right. and any presidential election one way or another it is going to be about the economy, no matter how hard the candidates try to deny that. the most amazing one perhaps of all time is indeed the incumbent obama who is running as though the economy during his term didn't happen or at least if it happened, it was the fault of somebody who was president four years before him and what he wants to talk about is the economy he's going to create starting in january 13 which will consist of people having
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green jobs, making windmills and solar panels. i think the american voters are probably getting a little bit frustrated that no one will talk about the economy as it exists right now, dropping to 1.3% in the second quarter. the united states economy is barely, barely moving. now i think voters want to know what's going on. dagen: what's going on with mitt romney, he can't seem to put together a cohesive discussion about the state of the economy that is resonating with voters. you mentioned in the column that he was talking about trade cheaters and energy independence, which seem wholly removed from what is really happening right here right now on the ground for the american people. >> well, the ads that target china as a trade cheater are aimed at voters in northern ohio and around the great lakes where the auto workers are, but obama has been running his own ads hitting china, so i think they kind of neutralize one another. we had a report this morning that durable goods orders have
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dropped the most since january 09. orders for motor vehicles and motor vehicle parts dropped 11% in august. whatever obama did to bail out the auto industry, those people working in the industries in the northern ohio are the ones affected by a figure like that. and i don't quite understand why romney isn't going directly at obama's economic record, while obama has been president. connell: because in that part of the world, in ohio, and particularly where they were both yesterday. they are going to be in virginia today. but they were both in ohio yesterday, and obama is leading big there if you believe the latest polls. yesterday there was an argument that hey some of the democrats are being more sampled in some of these polls. what do you think about that? >> if a poll in ohio says that obama is ahead by 8 or 10 points, i think that undoubtedly means that romney is behind in
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ohio, whatever the percentage. connell: maybe just a few points -- >> right. if there's a silver lining there, it is my sense if these people who say they will vote for obama do not feel strongly about it. i think there's still a lot of anxiety about where we are, and they are open to an argument from mitt romney about why obama's stewardship of the economy has been wrong for the country, but it hasn't quite been made yet. dagen: what is the one thing that mitt romney needs to do in denver next week, in the debate? >> i think he has to associate obama's economic record, the slow and declining growth rate, and the fact that unemployment went up to 9%, 9 1/2 percent early in his presidency and stayed flat virtually across the entire four years and he has to point out exactly why that has happened during the obama presidency. and then of course talk about his own policies as they relate to those subjects. dagen: he needs to more closely read the "wall street journal"
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editorial page, because you have been talking about -- >> thank you. dagen: -- how to frame this for a year now, private economy versus government economy. again, read the "wall street journal" editorial page. thank you, dan. good to see you. >> all right. dagen: our next guest says the best bet for investors is to put their money right where the federal reserve is. joining us now is ceo of advisors asset management. overseas 8.9 billion dollars in assets as the company's chief investment officer. scott good of you to be here. how much wind do you think the markets and which markets have at their back because of the federal reserve? what they said with this new policy is really open ended. >> not only is it open ended, but they committed that they would continue this behavior well into any recovery that we would see. and that's probably the big difference of what we saw last week versus the prior fed policy of just going on these bond-buying programs, calling it qe 1, qe 2. dagen: the goal of what the fed is doing to drive longer term interest rates down even more
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than you would put your money in treasuries, because it is very hard to get anybody even in fixed income to commit to that investment given where yields are already. >> i think the more wise bet is to try to put your money where the fed is pushing money to, not where they are pushing money out of, so driving down yields and treasuries is actually pushing money out of that market and causing it to go into risk asset markets like the equity market. dagen: we were looking at the yields on the treasuries, at 1.64%, they have come down. they have come down because there's some of that push of assets into treasuries coming from europe, from overseas because of the concerns this. >> well, i think the u.s. treasury market, like the market in germany have been the recipient of a lot of scared money and that money is just pushing in because that is risk adverse money, but there is a lot of risk in the treasury market at this point in time. if you were to have a recovery, and i know right now nobody can see that, especially after the
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durable goods report we had this morning. dagen: and the revision to second quarter -- >> absolutely. but no recovery is a straight line; right? you have ebbs and flows in a recovery. the thing i would point out to the viewers is if the ten year treasury rate were to go up just by 1%, which still that would be historically, low; right? we go from 1.6 to 2.6. you would lose 9% of your principal. dagen: right, but it might take that kind of loss to force that safe money out into riskier assets. thank you for being here. >> thank you. dagen: we will see you very soon. connell: the check is not in the mail as they say. the postal service about to default for the second time in two months on making a congressionally mandated payment of more than 5 1/2 billion dollars to prefund retiree health benefits. the postal service the only company in the country under such obligation according to the national association of letter
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carriers. postal service still in big trouble. dagen: have something to do this weekend other than watching racing because the nfl -- we should have the real officials on the field for tonight's game. connell: sheila bair is coming on also. she has a new book out. she will talk about the banks and the bailout. she's coming up later in this hour. dagen: big brother in your chocolate bar. nestle is tracking your whereabouts for a cash payout. you have to stay tuned so we can explain that. then take a look at how oil is doing today, up $1.33 a barrel. want to try to crack it? yeah, that's the way to do it!
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call or go online now. [♪...] connell: it's that time again. let's make some money with our good friend charles payne. dagen: he is back with a stock to bring you some joy to your portfolio. charles: i like how you talked about that. we're not talking about dishwasher liquid either. in august we talked about joy global, and you know what? i think that might have been a bottom. >> happy happy joy joy song.
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[laughter] charles: that used to be one of my favorites. dagen: connell knows the entire dance. connell: senior producer on this show, you know pete? he thought that was the funniest thing he's ever come up with in his entire life. dagen: and he spent two days. connell: all morning on it. charles: i will tell you what, it might not be the funniest. i know pete's work. but that's in the top four. connell: carry on. charles: joy global, up a little bit today on rumors china is going to do something big with its stimulus package. we know the global economy has hurt them. there's something the ceo said the last time they reported there's evidence that both the united states and china markets have bottomed we expect the recovery to be sluggish. i think ultimately that was a sign that, you know, your risk reward on this stock is pretty good. not sure when it is going to go up. it is trading with 8 p-e. we do know they have problems, missed the street three of the last four quarters. but these kind of stocks you
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don't necessarily wait for the economy to get better. you kind of get positioned in them. just like housing, you don't buy housing now. you should have been in housing six months ago. i think this will be one of those names. you can see starting to make higher highs in its chart after making that low in august. i think the next high it takes out, it could pick up some momentum. connell: what about the economy by the way after today's numbers and everything else? charles: we're skirting the bottom, 1.3% gdp growth. dagen: durable goods orders. charles: yeah. the only thing i will say we know that's one of the more volatile of economic indicators we get. maybe the best news is that 350,000 people filing unemployment. did you ever think that was good news, though? see how far we've come. connell: happy happy joy joy. [laughter] connell: thanks charles. charles: see you later. dagen: it is quarter past the hour. stocks now and every 15 minutes. nicole? yahoo! nicole: take a look at yahoo!.
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good news for yahoo! out of goldman sachs today and that is because goldman sachs reinstated of their coverage of yahoo! with a buy rating. they weren't too hot on the whole ali baba stake. the uncertainty of that stake value now has been reduced. so they have a new price target. the price target is 22 bucks. the buy rating and just talking about the balance sheet looking good, the core business and that it is worth more. when you put it all together, worth more than the current price. let's take a look at the dow and s&p, all up arrows. the nasdaq is up nearly a half of a percent. back to you. dagen: thank you. connell: sheila bair is coming up in a few minutes. the former head of fdic. she has a new book out. and she's going to talk about a whole host of things, what was wrong with the banks, the bailouts and tim geithner. don't miss it. dagen: one of this country's
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>> 20 minutes past the hour, i'm jamie colby with your fox news minutes. sources confirming that the obama administration knew within 24 hours that the september 11th attack on the u.s. embassy that killed the ambassador and three other americans was an act of terror. this conflicts with previous claims by the administration officials that the attack was spontaneous. the united nations is warning the number of refugees fleeing syria could more than double by the end of the year to 700,000. nearly 300,000 have fled into neighboring countries since the conflict began 18 months ago. and a tip from a dying man, amazing story has renewed the search for teamsters leader jimmy hoffa who vanished 37 years ago. investigators searching beneath a suburban detroit driveway after the man told authorities he saw a body being put into the
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ground around the time hoffa disappeared. those are your news headlines on the fox business network. i'm jamie colby. you know we will stay on that one. dagen? dagen: it is crazy and i'm still obsessed with that story after all these years. thank you very much for that. mortgage rates falling to new record lows once again. the rate on a 30 year fixed rate mortgage now sits at -- check it -- 3.4%. what to make of it? the professor of finance at george mason university is joining us now from washington, d.c. anthony, is this good for the housing market, or is the economy getting so weak at this point that nothing can save housing? >> well, right now, dagen, you are absolutely right. they can push rates even lower, and it's probably not going to do much good. one reason is that we're getting out of the summer seasonal. the housing market bumps back up in the summer because people are buying new homes or buying existing homes, pending home sales dropped a couple percent. that's to be expected about this
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time of year. however, we have the fiscal cliff looming, which is going to really maybe put a big damper on housing demand come next year. dagen: but anthony when people get ready to go out and buy a home, what is the biggest factor? because this is dinner table conversation, actually breakfast table conversation, did you see that you can get a mortgage at a new record low rate, or i highly doubt that people are discussing oh we have to hold off because the fiscal cliff is coming at the end of the year. is it the job market? is it worries about inflation? what is it that is the central thing driving the purchase decision? >> well, i think people do sit around and see record low rates, but that's more of a help towards refinancing, all the hamp, harp, all the other programs out there. unemployment, the numbers came out, but still over 300,000
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initial job claims and recession ended in june of 2009. that is still way too darn high. and so i think that's what's scaring people is the lack of economic recovery. and people like economic recovery if they are going to go out and buy the biggest asset, house, that they will ever buy in their lifetime. dagen: inventories we have heard time and again, inventories right now are becoming a problem. we talked to ron peltier of home services of america, and he says in terms of nonreal estate owned, nonforeclosure properties that it is tough finding homes at this point and could that become like a vicious vice, if you will, where the people who do want to buy can't find something that they like, and then you have this entire part of the potential home market that they are not willing to step up because they are worried about the economy? >> fannie mae, freddie mac, the banks and investors have very carefully tightened the supply
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of foreclosures coming on the market. right now there's a lack of supply in certain market areas, not at all. again, that's kind of controlled management by the financial institutions to try to, you know, keep -- they don't want prices collapsing anymore. and so they will release -- as housing improves, they will release them. the supply will come. dagen: you know, it will be missing every light fixture because -- i'm just kidding. you better have cash if you want to buy anything that is i guess distressed property. anthony, good to see you. take care sir. >> thanks. connell: breaking news that's come in now from the whoite house -- the white house. they are saying president obama and the israeli prime minister netanyahu will likely speak on the phone on friday. netanyahu speaking today at the united nations to the general assembly. a lot was made of the fact that the president and the prime minister did not meet face-to-face this week. the president has said that they talk on the phone on a
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semi-regular basis, and according to the white house, they will speak once again by telephone tomorrow. that just came in to us. anyway, one of the key players in the financial crisis, sheila bair is coming up in a few minutes. she used to head up the fdic. she has a new book out. we're going to ask her why she's going after the treasury secretary tim geithner. dagen: and they are going back to work, the nfl ironing things out with the referees union just in time for tonight's game. hndlg. -- hallelujah. but first here are some winners on the s&p 500.
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dagen: who gets the blame for the banking crisis? former fdic chief sheila bair is not pulling any punches, she has some tough words for the treasury secretary and we can't wait. nfl making peace with its referees union. a deal in place to get the men in black and white back on the field tonight. and why one of the world's biggest shippers is now going after the geek squad. and i can see this, nicole petallides is a geek just like me, 30 past the hour, stocks now and every 15 minutes. she doesn't look like one, but she's a nerd at heart, and that's why we love you. nicole: thank you. i consider that a compliment. i love looking at stocks. right now i'm looking at nike right there, down 1/4 of 1%. we are focusing on both nike and rim coming out with their numbers. the blackberry maker has really been in focus, while some thought research in motion was pretty much done, the blackberry 10 coming out. that's getting some rave reviews
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about being able to move through apps more easily. low end devices doing well for research in motion. they noted their subscribers up to 80 million from 78 million. these aren't as bad as they had been forecasted from research in motion. we will see what the numbers bring. how about the major market averages. nasdaq up 15 points, gain about 1/2%. the s&p up 1/3 of 1%. back to you. connell: thank you nicole. let's get to our next guest right now. we've been waiting for this hour because it's the featured guest of the hour because she was really one of the key players of the financial crisis, but now a new book out. in it as dagen reves referenced a moment -- dagen referenced a moment ago she does go after the treasury secretary geithner. there's a look at the book "bull by the horns". sheila bair is joining us now. thank you for coming in. let's talk about the treasury
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secretary first. to put it mildly you differed in how you would approach the last few years compared to geithner. where did he go wrong? >> there was this fundamental philosophical difference. as i have said, tim always did what he thought was right. i think his philosophy was if you bail out the banks, make them profitable, then the rest was going to take care of itself. so i think that was the fundamental fallacy of the approaches that we took, but i still hear it now that the rationalization well we made money off the bailouts because the banks are profitable and can pay some of those profits back to us. but the broader point is, what's happened to our economy? how did that help our economy? we know how the crisis hurt our economy. connell: a lot of this we're looking back -- and we do have benefit of hindsight. >> absolutely. connell: but geithner he's not here to defend himself, but if he was, i'm sure he would point
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out hey listen, we got a lot of this money back. >> in 08 we were dealing with a highly volatile situation. as i say in the book, we didn't have good information. the instinct was to throw a lot of money at it because if you don't do enough -- if you do too much, you regret it, but if you don't do enough, you could have a very bad situation. connell: one of the criticisms say hey lehman wasn't bailed out. >> that wasn't my criticism. connell: no but i'm saying people said that. we don't want to make that quote unquote mistake again. so we better bail these other guys out and avoid the disaster. >> in 09 the system was stable. that was the time to impose some accountabilities, impose some pain, replace boards, managers, make the institutions at least sell the bad assets take their losses and restructure. a sick bank that was just bailed out, this is what japanese foundz, they just nursed -- japanese fund, they just nursed
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their balance sheet. they didn't go out and make new loans and take new risks because they have all these assets on their books already. so it wasn't in retrospect -- i think we did not take the right approach. i think we repeated a lesson from history that we thought we had learned when everybody in the u.s. criticized japan, but we just propped them up, didn't let them take their pain. connell: we're looking back, benefit of hindsight, retrospective look at a crisis and decisions were made quickly at that time. let me take you there that week. we all came into work on that monday, the lehman weekend did happen. lehman i guess quote unquote failed and we went on but there were other events. i always thought when the big wall street firms were allowed to become bank holding companies goldman sachs and morgan stanley that if that did not happen, we would have had a disaster on our hands, morgan would have failed
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and who knows about goldman. >> you have to differentiate whether they were insolvent and whether they were having a temporary inability to access markets. one of the problems with investment banks was they relied on wholesale funding, continually going to the market to borrow money to fund themselves. the commercial banks had insured process which was a stable source of funding. citi even though it was commercial bank heavily relied on wholesale funding and had taken a lot of high risk. but goldman and morgan from a solvency standpoint they were able to access nongovernment sources of capital. at the fdic if we see a sick institution that can still access capital, that was an indicator they are still solvent. connell: the citigroup bank bailout -- >> again, we had to do something. nobody is saying that. it is just what we did. i think certainly the investment banks needed some liquidity
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help. citi was insolvent. merrill lynch i think was insolvent. they had had several quarters of losses, a lot of leverage, a lot of toxic assets. they of course had been able to convince b of a to buy them, which i think was a dramatically too high price. and that later on got b of a into trouble. but you have to differentiate between whether they were insolvent and whether they needed temporary help with their liquidity. connell: let me ask you one more thing. i'm sure people read this book and say sheila you were there, if you thought all the things you were writing about, why weren't you more publicly outspoken against some of the quote bailouts and other things that i guess you went along with? >> i have always been outspoken about the need to tackle the mortgages, which we never did. i tried through private conversations i find that comment, criticism a little ironic because i have been berated time and again for not being a team player being public about some of this stuff, but i was certainly very public about not doing something to fix the
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mortgages. and the internal discussions i did push back. i pushed back on the debt guarantee program. i had a a counterproposal that would only guarantee 90% of the debt. i wanted bondholders to at least take 10%. that's not something the other regulators would agree to. and the international community was going for full -- full guaranteeing the bondholders so there was a lot of internal dissension and pushback, which i document in my book. but i also -- i was trying to be part of one government, and we were in a difficult situation, and i tried to be a good soldier -- connell: team player kind of thing. >> i didn't agree with all of it. i think i have a a right to say now we could have done things better. connell: quick thought, present day, the libor scandal and all these thing what do you think of that? >> i think it needs to be fixed. it's been a problem for a long time. it's a flawed method for determining libor and still using it. a lot of different international groups looking at it now and
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nothing seems to be getting done. i think it requires urgency. libor rate is highly influential rate and have a flawed objective process on it. >> sheila bair thank you very much. >> thank you very much. dagen: american airlines threatening to give its pilots with an injunction for those delays that are keeping you at the gate and hurting business. and why this man is being called the epitome of what is wrong with politicians. spain's new prime minister and what he could mean for the world markets. and take a look at the treasuries. 3.4% is what a 30 year fixed rate mortgage will cost you these days. a new record low. and the yield on the ten year is only up a little bit today.
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>> i'm lori rothman with your fox business brief. american airlines threatening to slap its pilots with injunction. the airline has asked unions to stop disruptions by some of its pilot tas are causing huge delays -- that are causing huge delays in flights. following the initial
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testing of wells, a chief executive has said that where they thought they would find oil, well they did. bear wins approval from the food and drug administration on clinical trials of a drug. the dow is up 15 points right now. that is the latest from fox business network giving you the power to prosper.
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dagen: breaking news all eyes on europe as the markets over there are closing right now. ashley webster is here with the details. make it eloquent, ash. ashley: i will tell you what it is interesting the outlook for europe's economy taking another downturn with the euro zone business confidence falling to a three year low. but all eyes right now on spain as the country is outlining the
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details of its 2013 budget. let's take a look at the market action in europe. kind of struggled for direction today but finishing higher slightly. ftse up about .2%. the cac up about three quarters of a percent. and dax also up barely by a quarter of a percent. spain announcing economic reforms in a tight 2013 budget one that aims to avoid the political humiliation of having brussels come in and impose conditions on any requests for an international bailout. spanish leaders saying just moments ago that the budget is focused on cutting spending, not raising taxes, which of course has created a lot of anger among the spanish people. we have seen that rioting outside the parliament building as a result of that. so far we have learned that 43 new laws to reform the economy will be put forward in the next six months. spain's deputy prime minister saying these reforms will boost competitiveness and adjust public spending. by the way social spending in spain accounts for 63 1/2% of
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the nation's budget. also, on the backdrop of this, yet another regional government in spain asking for a bailout. that's the fifth region out of 17 to call for help from madrid. that means the emergency rescue fund set up to help the autonomous regions is basically exhausted of money, guys, back to you. connell: ashley thank you very much. going to move on and talk a little bit more about that because our next guest says the prime minister in spain is just the epitome of what's wrong with politicians. i don't think that's a compliment. the president and chief investment at merck investments is joining us. ashley just talked about the budget. you are not happy with the spanish? >> well, i mean, it's really their own problem, what they do, but the spanish prime minister, whenever the bond market acts up, he makes more promises. whenever the bond market is better he forgets about all these promises. we have 43 laws coming into too pipeline, 43 opportunities for
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demonstrations, 43 opportunities for the government to capitulate. the next thing that the government is doing now is they are raiding the pension fund, they are taking 3 billion from pension fund in order to pay for government expenses. they're going to live for another day, but things are certainly not looking great and most of the spaniards are shooting themselves in the foot here. connell: we care about europe for a a number of reasons but i think mostly because it can have an effect on the markets, everywhere, including we have seen that this week. one things have been brought up, what if the markets act as they did earlier in the week, and the markets are really pulling back, is that something that might hurt the president politically? what do you think? >> well, politicians always choose between the cost of acting and not acting. in the u.s. the reason why we're not acting, the reason why we don't have entitlement reform on the table by the current administration is because that bond market lets us get away with it. so let europe get its troubles
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in order only to the extent that the european central bank goes over these problems doing what the federal reserve has been doing by buying the securities and keep putting some calm in the market. the difference between the u.s. and europe is we have a current account deficit in the u.s. if and when the bond tells us to get our act together, we are most vulnerable, in particular the dollar is most vulnerable and then yes we will act. but then it is going to be just as painful. connell: forced to act, money keeps coming in here rates couldn't be any lower than they are right now as the money floods into the united states as opposed to going out of it. the point is you don't see an october surprise, something out of europe that really upsets is blows up and becomes a big issue for our election? >> well, we we have a chronic condition in europe, you can consider it hurry up and wait or groundhog day. the euro is around 1.28. it is not at parity. so the market is getting used to
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it. the reason the market is getting used to it is because the head of the european central bank has imposed a process under the euro zone, it is a messy process, but we have to think about what standard do we hold politicians up to and policymakers and we have a mess in the u.s., in the u.k., in japan, in the euro zone. the euro is just becoming to be yet another currency which is much better than it was a few months ago. connell: thank you very much, sir. >> my pleasure. dagen: by the way the the nfl is going to have a press conference next hour on the settlement with the referees union. so bring it, baby. you will be able to watch it here. right now, though, it is stocks now and every 15 minutes. nicole is looking at the biggest movers for us. hey nicole. nicole: hey dagen and connell, we have had the opportunity to take a look at things including the merger in the mattress arena. take a look at some other movers or things that people on wall street are talking about, some names we are keeping an eye on, including imax which was upgraded today at susquehanna to a positive from a neutral.
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that's a winner there you can see that with up arrow, up nearly 4%. also we're watching some other names including discover financial which is doing better coming out with good quarterly numbers. consumers are spending more. the transaction volume is also higher. goodyear tire getting upgrade. and apple. >> thanks. connell: a tech connect service to handle pc repairs, fedex teaming up with a small company based in taiwan g-tech, for its computer repair expertise. computers can be dropped off at fedex locations and then they will be able to turn around many repairs they say in just about one day. fedex. dagen: we mentioned this before, big brother and chocolate. we will explain. nestle is using gps in some of its candy bars. you can't even make this up. connell: no you couldn't begin to try. dagen: why would you want to?
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connell: even better question. nasdaq winners today, green mountain, staples, sirius is up. we'll be right back. more on markets now.
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dagen: nestle is taking willy wonka's golden tick tote a whole new level. -- ticket to a whole new level. it recently launched we will find you campaign in the u.k., gps tracking devices were placed
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in six candy bars and once the winning candy bar is unwrapped the tracking device will go off and nestle will be able to find the exact location of the winner. the winner will receive 10,000 pounds or 16,000 dollars which would never work with us because if someone tried to accost us in the street or in our home, well, we will hurt you. connell: yes we will. breaking news on fox business, by some accounts is a 9 billion dollars business, nfl football gets their officials back. tonight the real officials -- oh, man -- they are going to have a news conference in about 45 minutes. we will take that live here. dagen: peter barnes has the details of the deal that brought them back to the gridiron. hey, peter. peter: hey guys, can't help myself. dagen: do it. connell: oh no. dagen: oh no. [laughter] connell: all right, go ahead. peter: rich they are calling for you. flag on the play. all right, we have the
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settlement with the help of federal mediators the league has temporarily lifted the lockout so officials can work the ravens browns game in baltimore tonight. it's an eight-year deal that takes the refs through the 2019 season. some pension reforms that the owners wanted, nice pay increases for the refs, hitting $200,000 a season in 2019. remember, these are mostly part-timers; right? and to give the owners some flexibility in benching refs it deems underperforming. the league will have the option to start hiring its own officials. nfl commissioner roger goodell said the agreement supports long-term reforms that will make officiating better. the teams players fans want and deserve both consistency and quality officiating. one football great says after the blown calls by the replacement officials, the league had to cut a deal. >> they were doing all right until they put the replacement referees in. it was a debacle.
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it was an embarrassment. they had to cave because the game was being compromised. peter: the refs will vote on the agreement friday and saturday will be back on the fields for sunday's games. dagen and connell. connell: by the way everybody keeps saying the lockout -- it is temporarily lifted tonight; right? peter: right. connell: i'm sure they will ratify it. peter: they will ratify it. connell: what a mess in a lot of ways the last few weeks. what were you going to say? dagen: i said nothing. i've said my peace. i will be watching football this weekend. connell: get it straight here. dagen: we're going to play this again? >> it's the happy happy joy joy song. ♪ happy happy joy joy ♪ happy happy joy joy ♪ dagen: we are playing this because the refs are coming back. ♪ happy happy joy joy ♪ happy happy joy joy
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peter: that's one of my favorite tunes. i love it. connell: i figured you were a big fan. thank you peter as always. peter barnes in d.c. what a day. dagen: the flash crash, everybody remember that? coming up dennis and tracy, a guest will warn unless high frequency trading is fixed now, another crisis will happen. connell: tracy is in today, tracy byrnes. and why this could be the next big hit for the same people who brought you angry birds, we've got it all covered today, fox business, stay with us, markets coming right back. so... [ gasps ] these are sandra's "homemade" yummy, scrumptious bars. hmm? i just wanted you to eat more fiber. chewy, oatie, gooeyness... and fraudulence.
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not quite knowing what the next phase was going to be, you know, because you been, you know, this is what you had been doing. you know, working, working, working, working, working, working. and now you're talking about, well you know, i won't be, and i get the chance to spend more time with my wife and my kids. it's my world. that's my world. ♪ >> market now covering everything from the market growth, nfl officials coming back. dagen: know what is odd? you both were complaining about it, but now that the regular
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ones are back, we are not excited. connell: not really. we are still rooting for a blown call to decide the game. dagen: we are haters. tracy: i think we should be excited about the rest coming back. >> the first bad call they will say they are out of practice and haven't been prepared. dennis: new fears of recession. a huge drop in order for cars and trucks and machinery. that is raising fears of the dreaded r. word. tracy: augusta says it could happen again unless high frequency trading is brought under control now. dennis: maybe pigs can fly after all. details on what might be the next blockbuster for the company that brought you "angry birds."
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tracy: and live coverage of the nfl news conference to officially end this ridiculous referee lockout. also goes bad, dreaded calls are a thing of the past. dennis: top of the hour every 15 minutes, phil flynn at the cme with gasoline rising again but nicole petallides at th the new york stock exchange. its rays hitting the lowest ever, nicole. nicole: this is the time to talk about mortgage rates hitting the new low. 3.40% for 30-year fixed rate mortgage. you can see that is one that will be on the move. we got pending home sales down 2.6% month over month. year over year up 10%. look at the hom homebuilders, my of these names are up 80%, 90%, more than 100%.
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how about we take a look at the broader market, up 48 points right now. the nasdaq doing the best up nearly 1% at this point. phil flynn, tell us what is going on over there. phil: i'm telling you, nicole, it is exciting at the gas market. shortages in supply that every major delivery point. the gulf coast, you name it, causing a lot of the wholesalers to buy it up. if you look at the spread between the front futures and the back month, it is the biggest spread since after hurricane katrina. that showed a lot of nervousne nervousness. they will take any price course. the other thing adding to the
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volatility is the futures expire tomorrow. that could mean traders are caught in the spread. between the front end of the curve and the backen back end oe curve for gasoline. more refinery issues coming out making trades very nervous, back to you. dennis: thank you very much, phil flynn and nicole petallides. tracy: did the government take the wrong approach? here's what former fdic share sheila baer had to say on "markets now." >> we did not take the right approach, we learned a lesson from history that we thought we had learned when everybody criticized japan. tracy: hindsight is 2020. our next guest blames the handcuffs of bank regulation on lending.
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author of "saving the american dream." thank you for being with us right now. you would have thought we learned our lesson after sarbanes-oxley, right? costing them hundreds of thousands of dollars, doing it all over again, aren't we? >> that is right. a long history of policies designed to make the achievement easier and it undermines everything we're working to achieve. tracy: if you could have interviewed sheila baer, what would have asked her? speak of the biggest issue for me as a lot of those policies did not factor in. the big difference between large banks and community-based institutions really supports the basic dream, job, mortgage, auto and education. without those things is hard to see how they move forward economically. tracy: i think that was missed, so many small banks were not even involved in the subprime crisis at all.
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>> largely did not participate. higher yield rates, etc. the crisis much worse off all the large banks are up in sf 20% have grown larger, small banks are failing in the hundreds. in the process killing the american dream and job creators. tracy: so are you seeing any improvement whatsoever? speak out were starting to see small business lending improve. the real problem, the simple formula for consumer ready economy, consumer base, the job creators in the last 17 years or small business 65% of the jobs and people who lend them are the community-based institutions 60% of those loans. it seems counterintuitive you would do everything it seems we're doing to undermine those two groups make it virtually impossible for small business to grow and make it hard for people who support them to do what they do best. tracy: you have this unique
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perspective because you're involved with the big banks and as an entrepreneur very involved with the small banks. so where are we with this process right now of trying to unwind this mess? >> the banking system was created by governments to facilitate congress to occur. you need them to do well but mention managing the risks. the issue is large banks have a totally separate set of issues that needs to be managed and we need to have them accountable for the risks they provide to our economy a that an efficient way as possible so we can create commerce, which is what we are designed to do. for smaller banks, they don't participate, they do the basics and make it easier for them to do what they do best. tracy: dodd-frank causing small businesses, small banks 25% more than they need to. thank you for being with us and sharing your thoughts.
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>> thank you very much, and pleasure to be here. dennis: the check is not in the mail. u.s. postal service to default on a huge pension fund payment making it the second-largest payment in two months and has missed some $5.6 billion paying in to pre-fund retiree health benefits. the post offices in 25 early in dollars every day. 5 billion june quarter in the 1 billion pieces. closing small branches. tracy: the post office of the most beautiful buildings, prime real estate. dennis: taxpayers funding everything. tracy: maybe somebody will send a card. the nfl referees are ready for some football. the refs are back, and hopefully no snafus like this one on monday night.
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keep it right here, live coverage of the nfl news conference this hour. dennis: chase government workers are the new privileged class. detail in a study out showing how much more they are paid than those of us in the private sector. so much for that public duty. first as would every day at this time, take a look at oil.
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dennis: it is time to make money with charles payne. this hour he had a little sparkle for your per folio. >> i will cut straight to it. zales. the stock was in bad shape and kind of creates a dilemma because $6.80 is actually up 100%. in less than a year. a lot of people say i am in this to move. i don't think so. in 2005 the stock was $35 per share, so we know there's a whole lot more room on the upside. consistency. the last four quarters that beat the street. same-store sales up 8%, seven consecutive quarters of positi positive. operating margins up 450 basis points. to learn how to operate their business better closing nonperforming stores and i think they turned a corner, their debt
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is down, more free cash flow, this the company we might even be able to study one day. dennis: a company that sells wedding rings nothing more than numbers, but for a jeweler when gold prices go up, does that help the jeweler or does it hurt the jeweler? >> i am not sure. diamonds would have an impact, but i think they can pass this stuff on. the best part of the business happens to be the u.s. and fine jewelry, that is the biggest sales. that is working out for them very nicely. i have to tell you i was in a mall last night and a lot of people around the zales. the stock is already matched the daily volume on the cusp of a major breakout, talk it $7.10. i think we're off to the races. i recommend it. dennis: thank you.
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tracy: jewelry in the mall. some breaking news, or maybe not, public servants, a study just released showing state government workers making more money than their private sector counterparts. rich edson joins us inside the beltway. your report is breaking but i guess the hypothesis not so much. >> you have citizens against government waste and what they have done is look specifically at state employees, federal employees, basically what these folks say is state governments pay on average 6.2% more per hour in wages and benefits and pension benefits and the private sector 22 major occupational categories. the one day on these reports is government workers earn more than their private sector counterparts. yet people that are more educated working in the government, people, folks in different occupations. were not really comparing apples to apples.
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they say you are, and when you make the straight comparison, government workers on the state level are paid more. in january the federal government came out with a report showing federal government workers also made more than their private sector counterparts. we have gone out to the unions to ask for a response, this report just came out, we will be detailing it throughout the day. tracy: rich edson, we will be talking about this report all day long. dennis: it is 15 past the hour. nicole, the dow up more than it has been all morning. nicole: that is right. the traders are taking note of it. take and financials and energy leading to the new session highs. the dow jones must go up half a percent, the tech heavy nasdaq composite up over a full percentage point coming on the heels of news with the euro
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gaining strength, the dollar pulling back and they're working on their budget plan which they will pass some reforms bringing some optimism to the market in the state. you can see those up arrows. two names in the insurance industry, if possible insurance deal. the "wall street journal" reporting they are close to a deal to acquire individual life insurance. none here before the new york stock exchange, this deal could be struck as soon as today. up over 3%, back to you. tracy: thank you, nicole. we will see you in 15 minutes. we have more on the continuing saga of where in the world is former teamsters boss? we will show you where police are now searching. dennis: with cost about to go higher for bacon, little piggies flying higher may be the next big thing.
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>> 20 minutes past the hour, this is your fox news minutes. president obama not meeting with israeli prime minister during the u.n. general assembly. the white house is saying they will likely talk by phone today. he will make his case against iran today before the general assembly signing time is running out to stop the islamic republic from becoming a nuclear power. u.s. appeals court in new york is considering the constitutionality of the defensive marriage act, federal law restricting the recognition of same-sex unions and has been part of legalizing gay marriage. a ruling not expected for months. how about this, investigators checking out soil samples from beneath a suburban driveway as part of the search for jimmy
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hoffa. may have witnessed the burial 35 years ago. he disappeared in 1975, his body has never been found. if they find him, we will let you know. back to tracy. tracy: the story that will never die. >> take care. tracy: more bad news for the economy. second-quarter gdp revised downward. the worst decline since january 2009. joining us now. this is frustrating for those of us sitting here at home because we have qe-infinity going on and we have no change in economic data. >> revised second-quarter at 1.7%. we take a look at what happened, less business inventory, less
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consumer spending. i want to highlight the inventory really quick because businesses don't want to ramp up production because there's no clarity of direction. what is happening with fiscal policy. monetary policy cannot drive fiscal policy. look at how come it in the fed is committed to giving us the backstop for economic growth and expansion. tracy: we hear that all the time, get the uncertainty out of the market. it is solving the fiscal cliff the uncertainty that we need to get rid of? >> absolutely. we do have the election coming up which the country will go one way or another toward redistribution of wealth or back toward capitalism. the next thing you have is europe, which the european nation has come out and basically said they have to
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really go about doing that, the fiscal cliff, the debt ceiling and the fiscal cliff is the big issue coming here. it could push us over into a recession. tracy: durable goods number disappointing for a lot of people and interestingly you still like caterpillar as one of your pics. if we're not doing anything, building things, beefing up inventory, why caterpillar? >> to take a look at where it is right now, a very attractive pe of nine. its margins and growth are well above its competitors. when caterpillar pulls back, we series since price around 82, $84 per share. once we get economic growth and expansion because it will come back whether it comes back next year, two or three years from now, it will be a great buy over the next year and a half.
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tracy: you need a lot of patience in this market because you have to work out all of the kinks. a lot of people putting their money they're looking for the dividend play. there are so many unknowns even if we fix the fiscal cliff, all the overseas stuff is still out there. >> when you look overseas, we feel if you look at gdp, gdp numbers are past performance, not leading indicators, they're past indicators. we feel europe is already slid into somewhat of a recession. look at the central banks around the world trying to have the best accommodating policies as far as economic growth and expansion development goes, you have to look at the emerging markets. tracy: great point, actually. thank you for sharing your thoughts with us, the money will keep coming, i guess. >> thank you, tracy, have a great day. dennis: revenge of the piggies.
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the company that made "angry birds" hoping to make lightning strike twice today. the makers of the once addictive but now kind of fading game releasing an all new spinoff sequel called the "bad pigs." including more than 60 levels of what they call peg crashing pegg exploding and flying fun. the game debuts today and will be available for iphone, android, the piggies have big shoes to fill. it was the most downloaded smartphone app in 2011. a key step for rovio eyeing a possible stock option. tracy: it is crazy. the battleground, virginia. live from the capital, springfield. president obama and mitt romney find themselves campaigning in the same state for the third time in a week. dennis: investors leaving the market in droves scared off in part by high-frequency traders.
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we have a guest who knows how to level that playing field. tracy: and live coverage ahead, the nfl news conference that could announce an official end to the referee lockout. but first, let's take a look at the winners and losers on the s&p 500 as we head out to break. financial services way up top, 5%. ♪ [ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense.
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dennis: home mortgage rates at a record level. in august taking a dive, and following the flash crash we have a guest who says automated speedy trading has me brought under control now. and potentially the end of the lockout of the official referees.
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tracy: 30 past the hour, a look at stocks as we do every 15 minutes. nicole, you're watching the financials, aren't you? nicole: im. looking at the credit card companies like discover. the loans increased 9%. their volume increased 13%, people are spending again on their credit cards and fewer borrowers are defaulting. that is good news as well is the fact that she made a deal with paypal. that is a winner and other companies with up arrows as well. retailers, bank stocks, transports, gold, oil all hired today. i look at the nasdaq, s&p 500 up
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1%. back to you. tracy: recent breaking news, we are moments away from a news conference by the nfl which could mark the official end to the referee's lockout. peter barnes joins us from inside the beltway with the details, what will we here? >> we will hear about the settlement made with the help of two federal mediators. they have temporarily lifted lockout so officials can work the ravens-browns game in baltimore. it is an eight-year deal taking the referees through the 2019th season, the longest in nfl history. there are some country forms the oilowners wanted that but nice y increases. the deal gives owners some flexibility in benching refs if they are underperforming.
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the commissioner said will make officiating better. "the teams, players and fans want and deserve consistency and officiating." the refs are connected to vote on friday and saturday and be back on the field for sunday's games. they say they like it. tracy: peter barnes, we just want them to play. we will have live nfl news conference right here when it begins, so don't go anywhere. dennis: investigation into stock trading system, millions of investors have gotten out of the market and some blame the unfair advantage to high-frequency traders. now we're joined by the founder of a dark pool trading huge blocks for private clients so people cannot realize exactly what is moving around. you hate high-frequency trading, get the feeling, but i have been told high-frequency traders are
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helping to unlock transparency providing liquidity in the market, all good. what is wrong with high-frequency? >> historically the markets have been consistent of retail investors and institutional investors. now the majority of the volume of the market in high-frequency trading which is divorced and the price of the stock from the underlining fundamentals. they don't care about the underlining fundamentals and every day they go home flat. they are not investors. the problem is the message they send out and the frequency at which they try to tread, does not really liquidity. not providing liquidity at a tenth of a millisecond for the types of investors, institutions to manage money on behalf of you and me, they are not benefiting from it. we have the majority of the volume in the market consisting of people who don't care about the fundamentals, the stock in which they are trading is more about the commodity.
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dennis: how much of the upside of the thousands of trades per second don't even execute, how much of it is the high-frequency getting in line first for the new york stock exchange and other clients? >> not all high-frequency trading is bad. the majority, i believe, going on today is about high-frequency trading computers, an institution when they go to buy or sell stocks move the market because the demand is operating with supply. thousands of high-frequency trading computers that listen for that and when they see it and when they hear it they go when to jump ahead of it, which means it is a tax on all of our returns, all of us who invest in those. dennis: in some ways you compete with high frequency trading. tell us, so we just ban
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high-frequency outright? >> there are a lot of different ways to limit it. the best way as investor confidence. hopefully the economy is coming back. unfortunately it is blown. there's a common thread that underscores the flash crash and the fiasco from the facebook fiasco and it is all about the systems for massive amount of traffic, not investors but high-frequency traders. in a massively visible fiasco like facebook or any of them happen it destroys investor confidence around the world. dennis: you have one bullet point in your notes, the determination to participate in high-frequency flow. they could separate me out and have me not participate? >> exchanges over the world are trying to beef up his system to attract high-frequency traders. because it generates a tremendous amount of transactions, that is a big way
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of how exchanges make money. the unfortunate thing is that destroys the integrity of the market itself, so if you're going to attract high-frequency trading, have a separate pool where investors can go and decide if they want to interact with high-frequency or not. that is not right. dennis: are you doing anything, are you pitching a proposal anywhere? >> talk and regulators over the world and the regulators are pointing to the united states as what's not to let happen. dennis: thank you for being with us. appreciate it. see you again. tracy: thank you, dennis. american airlines threatening legal action unless they stopped filing what americans see as nuisance complaints. and campaigning in the same state for the third time this week. we will take you there.
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delays. both sides indicate they want to resume negotiations on a new pilot contract. the food and drug administration approved the new colon cancer drug clinical trials show the drug helped patients with nearly a month and a half longer than those who received standard treatment. and now a record households with the biggest burden falling on the young and poor. research found 22 million households had college debt in 2010. increased or my higher tuition along with rising college enrollment during the economic downturn. that is the latest from the fox business network giving you the power to prosper. [ owner ] i need to expand
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to meet the needs of my growing business. but how am i going to fund it? and i have to find a way to manage my cash flow better. [ female announcer ] our wells fargo bankers are here to listen, offer guidance and provide you with options tailored to your business. we've loaned more money to small businesses than any other bank for ten years running. so come talk to us to see how we can help. wells fargo. together we'll go far. dennis: breaking news, we are awaiting a news conference live on the nfl on that deal with the lockout referees. the score so far referees one, nfl minus two. we will have that live for you.
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tracy: president obama and mitt romney again, the campaigns find themselves in the same place for the third time this week. they returned to the battleground state at virginia. john roberts on the scene in virginia. john, how is it looking? i guess you don't know which way to turn, which campaign i pay attention to? >> there are a couple of hundred miles apart, but still same state, same day. governor romney was here the american legion home number 176 in springfield talking to veterans group. they talk about the potential effects of the looming defense cuts in virginia, it is estimated the state of virginia could lose 136,000 jobs in those events went through. it still remains all about the economy, all about jobs across the country in all the battleground states. yesterday they were in ohio, president obama talking about the idea that governor romney
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promised details on his tax plan, economic plan, but hasn't been able to deliver on those details at this point. governor romney is talking with the details because they will figure it out. governor romney today pounced on the lower gdp figures of 1.3%. reinforcing his idea, his argument this country can't afford another four years of president obama and that he, romney, with a five-point jobs plan has the right prescription for economic growth. here's what he said. speak of those five things i describe will get america's economy going again. will help people find jobs who need those jobs. we'll get take-home pay to go up again. this is not a mystery, we know how to do it, america has faced challenges before when we have strong leaders. and we have people who know how to lead and where to lead, and im and we will. >> governor romney has had a
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subtle shift in the future of what this country would look like under a romney administration. he had been making this a referendum on obama, now he is shifting, tracy, toward making it choice towards the presidents policy and his. tracy: we had the first debate less than a week away next wednesday night, what can we expect? >> there are a lot of republicans really want governor romney to be very forceful, very tough when he meets president obama in denver. that was a question thrown to congressman paul ryan in colorado yesterday. the woman stood up and said i was a little concerned about john mccain performance against president obama, let her pick up the question from there. >> will they be forceful in this debate and take it to obama? >> ma'am, absolutely, but one
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little difference between then and now. president obama has a record. and president obama has a record in a string of broken promises. of course he will. >> of course one thing is certain, tracy, when you look at the numbers of the battleground polls and how they're trending toward president obama, governor romney needs to make a big move and it needs to happen in that first debate next week, tracy. tracy: john roberts, you're absolutely right. thank you, sir. a quarter until the hour, checking on stocks. the call watching the dow, are we giving it all to spain? nicole: the dow jones industrials are doing very well up about 78 points. four days of selling and here we are, industrials, 26 of the 30 names have green arrows.
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just name a few of the dow winners. a pretty good day here on your hands at least for the moment. no fear at the moment. let's take a look at united airlines. looking at united continental as the world's largest airline, but a couple of things to note, the airlines are all to the downside. down 3.3%. falling one to 2% per seat. also talking capacity will be coming down. other business expenses in a tough economy. back to you. dennis: thank you very much, nicole. my next guest says high-end travel is on the rebound as more businesses send their workers back out on the road. joining me now for this weeks on the road segment, ceo of corporate travel running corporate travel department.
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the travel business has been suddenly late in july, august and we see something happen, what is it? >> somewhat of a leading indicator, all of a sudden things are starting to percolate since this summer. dennis: 3% since august. looking $600 million per year in air flights wiped out by the web, what do you think is the real reason behind the spurt you are seeing? >> so the uncertainty is being run out of the economy. our clients are at the forefront of doing deals, going all the world to global locations and they're thinking europe is going to work his problems out and the election coming up, i think they're starting to get a little bit more permanent. dennis: assaulted their banking that they will act accordingly?
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>> more with let's get this over with because the uncertainty is who is going to be the next president but also let's get this behind us. they will start moving around a lot more. we see the significant bump since august. dennis: you say regardless of which candidate wins, that the travel business will suddenly take off, why is that? >> i think there is so much waiting, so much nervousness about what is going to happen postelection. and once that happens, no matter who is elected, there will be a lot more certainty. dennis: do you get the feeling, paul, we're in a slingshot economy, pulling back and pulling back and waiting so long to matter what happens to texas? >> we have been waiting and the
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market is undergirded by housing and once housing will improve i think everything else falls into place. i am very optimistic going forward. dennis: thank you so much for being with us. tracy: good stuff, dennis. the nfl's bh ready for football. live coverage of the nfl news conference ahead. dennis: and skyhigh predictions on where gold is heading. first, a look at the day's winners on the nasdaq. [ male announcer ] you are a business pro. monarch of marketing analysis.
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dennis: breaking news, we're awaiting the live news conference by the nfl on a deal with the lockout referees. it makes it sound like the referees are the clear winners just by embarrassment of what happened at the packers call. you have them getting a raise, they will get $173,000 by 2013, up to almost $200,000 by 2019. they have been arguing against giving up their pension plan, the nfl will have to wait until 2016 before doing that. at least we will get them back on the field tonight for the ravens-browns. tracy: i don't know who wins. mcdonald's making a new menu addition at 700 restaurants. the fast food chain has created the m. channel. local news and sports.
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network will serve as a platform for other countries looking to tap into the mcdonald's audience. and check this out. a recent survey suggests your child brain could be imprinted with logos like the golden arches and other. they used mris to monitor brain activity and kids. the area of the brain getting hungry, it's all lit up. showing logos from other non-fast food companies. that's because my son would have no idea i who made his microwave popcorn. dennis: it will come under attack from food activist because we go to nutritionist once they tell you is do not eat in front of the television. you're nowe are not focusing ond enough, now the most fattening food in the world and watching tv while you eat it.
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tracy: maybe watch people run or something. betting on silver to outperform gold long-term but should you be following suit? sandra smith with today's "the trade" live from the cme. >> pull up a gold chart because you are going to want to take note at about $1780 per troy ounce. this would be the biggest weekly gain if you are to close these levels an in a couple of weeks. silver also one of the leaders in the commodities market. that is why we're bringing in dan because we are looking at the most bullish trades in the silver side of the market. even when you look at the etf, looking at holdings in silver at a record. >> looking at what we had, 53%, to times respectfully more than
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gold. be a bit of catching up. all the stimulus in particular with the gold, chinese stimulus are hoping to push it. >> a lot of that is boosting the price of metal. dennis: did the nfl surrender or take any? live coverage coming up. tracy: melissa and laurie are ahead with breaking news and reaction.
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the ♪ dennis: live coverage of the end
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of the press conference. the nfl has given up the right until at least 2016. cheryl: you said it earlier, the referees kind of won this battle. lori: i think you are right about that. melissa: getting some sort of something on the side there. now, i am just kidding. [ talking over each other ] lori: unions are in the story that is affecting all of us. we have the breaking news for you. it looks like it is starting. melissa: we will go to the nfl press conference right now. >> commissioner, there was a lot of talk about sunday night, monday night about how much that influenced the negotiations


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